Good evening StockBandits!
Last night I noted here that we had pulled back for three sessions into key levels for the NAZ and S&P, and that those zones may produce a bounce. Today we got that bounce as buyers stepped in to defend those levels into some early weakness, with the lows of the day being carved out in the opening minutes of the session. We saw a decent intraday uptrend emerge, and although some of the gains were given back with some late-day selling, the market finished positive.
We’ve been in an environment where bounces have been getting sold for the past few weeks, which means that once the market is able to make a fair turn back up, it may be slow to take root. Traders are easily conditioned to respond to recent behavior, so it’s not too surprising that the first day of this bounce is being met with some skepticism (hence the late-day selling). Nonetheless, we now have a level to trade from on the long side, so let’s see how things unfold.
Despite the fact that this bounce is starting off in a sluggish manner, I have less interest in the short side after seeing key short-term levels hold up. I’m willing to change my opinion as warranted by the charts, but for now more bullish setups are emerging and that’s worth paying attention to – so long as appropriate stops are well-defined.
I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: X, SINA, ATML, LULU, NR, SOHU, FMC
Swing Trading Candidates:
FMC pulled back to key support in recent days and last night I actually listed it for a breakdown candidate. Today the stock undercut support, but quickly rallied back to reclaim it. That head-fake move now leaves the stock poised for a push higher, but it will need to clear the trend line at $83.50 first. I’ll be using that level as a trigger for a buy, and will be looking for a push back up toward the recent highs if it is cleared. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
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The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.
